Two Assignment so be completed

BUS 637 Week 4 - Discussion Forum 1

Guided Response: Respond to at least two of your fellow students’ or instructor posts in a substantive manner and provide information or concepts that they may not have considered. Each response should have a minimum of 100 words and be respectful of others’ opinions and beliefs that differ from your own. Support your position by using information from the week’s readings. You are encouraged to post your required replies earlier in the week to promote more meaningful and interactive discourse in this discussion forum. Continue to monitor the discussion forum until Day 7 and respond with robust dialogue to anyone who replies to your initial post.

There are two of my classmate’s discussion that is on this document. I need to respond to each one. Andrew Magistri and Tiffany Gordon. Please follow the instruction above and make it as detailed as possible.

Andrew Magistri

WednesdayOct 14 at 8:04am

Manage Discussion Entry

Hi everyone,

When considering source of funding for the purpose of opening and operating a business, it is important to weigh the consequences associated with each decision.  The benefits are relatively clear cut in that the decision will always lead to a source of funds available fund business purposes.  

From a personal viewpoint in consideration with the current interest rate environment, I would likely choose debt funding.  The purpose behind choosing debt funding currently are the all-time lows tied to current interest rates.  By pursuing debt funding in place of equity funding, the costs associated with the decision are limited to the interest paid during a pre-designated scope of time versus an ongoing cut to profit by adding additional shareholders. 

An important consideration that should also be considered is the size of the business.  The size of the business is likely to dictate the size of a loan that will be allowed by a bank.  Equity funding can be issued based on qualitative data as well as quantitative numbers, meaning that equity funding does not necessarily need the business to be producing profit margins to feel the monetary promise of shareholders.

-Andrew

Glackin, C., & Mariotti, S. (2020). Entrepreneurship: Starting and operating a small business (5th ed.). Pearson.

Tiffany Gordon

WednesdayOct 14 at 7:33pm

Manage Discussion Entry

People struggle through different financial states. Sometimes companies have a hard time when it comes to maintaining their finances. It is important for a company to know where they are financially and to be able to know what spending methods work best for them. There are different ways that a company can control their spendings. If I had to choose directly what options works best I would choose finance with earning.  Finance with earning is the choice that best fits my personal feelings because when a company is able to keep stability this is beneficial because it is a constant income in addition to a constant debt to income ratio. “If a company is profitable and has positive cash flow, it can use some of its profits to finance expansion” ( Glackin, C., & Mariotti, S. (2020).   Finance with earnings is beneficial for the companies that have a smaller income. It helps with self control and control of the business finances so that the business does not exceed the companies finances. In the link provided it has details about earning and maintaining finances.

 

Link:

https://financial-dictionary.thefreedictionary.com/earnings (Links to an external site.)

Reference:

Glackin, C., & Mariotti, S. (2020). Entrepreneurship: Starting and operating a small business (5th ed.). Pearson.